Generating an annuity payment using a dynamic asset allocation investment

Abstract

An annuity is provided to an annuitant based on the performance of an investment. Assets of the investment are automatically reallocated over time and the annuity payment may change based on the performance of the automatically allocated assets. In some examples, the assets are automatically reallocated based on a demographic, which can include an age, a range of ages, and / or a gender.

Description

FIELD OF THE INVENTION

[0001] The description relates to generating an annuity payment using a dynamic asset allocation investment. BACKGROUND

[0002] After retirement, individuals typically rely on savings and investments to pay for day-to-day expenses since they lack a steady job-related income. One method of saving and / or generating wealth is investing in an annuity. An annuity is a savings or investment contract that makes payments, immediately, or at some deferred time in the future, to the beneficiary (the “annuitant”) of the contract, usually the individual that invested in the annuity, for the remainder of the individual's life. Some annuities allow the individual to save and / or grow money tax-deferred, taxing the gains at the time of disbursement. For post-retirement annuitants, deferring taxation is advantageous because the annuitant does not have an employment-derived income, typically falls into a lower tax bracket, and thus incurs a lower tax liability on the annuity pay...

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